Porting Mortgage and Broken Interest


I recently bought a new property. As we were still well within the fixed term of our existing mortgage (£200k) we had to port that and also take out a second smaller mortgage (c£90k) to cover the price of the purchase. We moved on the 21st of December. 

For the older mortgage we made our usual payments at start of December and start of January (£1250) then received a letter saying they were going to take £2,100 on middle of Jan in respect of the January mortgage payments (plus broken interest) before going to £1700 from start of Feb which will be the ongoing monthly payment.

All the mortgages are with the same provider.

I called up to query this as having already made a payment at the start of January for the existing part of the mortgage I didn’t understand why I was having to make another payment for that. The £2100 payment was roughly broken down into £1550 for the existing mortgage and £550 for the new. They explained the payments were higher due to broken interest (e.g. interest to be paid for period from 21st to end December). I can understand that for the new smaller mortgage but is it right that I’m paying extra for broken interest on the mortgage being ported given that I had paid the December payment (including interest for whole of month on 1st December and have also made the January payment.

Eventually after multiple calls and a trip into branch they agreed to refund the January payment already made of £1250 but essentially that same payment is now costing me £1550 because of them charging interest twice. 

I know it’s not a huge sum of money but the £300 could be spent better on other things than having to pay interest twice! 

Has anyone else had a similar issue? Is what they have done correct or is it something I should continue to question them on? 


  • penners324
    penners324 Posts: 2,569
    First Anniversary First Post Name Dropper
    Sounds like the letter showing the new payment didn't include the payment made at the beginning of January.

    Pretty standard as it takes a few days for the payment to be processed.

    They were likely to refund that or keep it as an overpayment anyway. Or even adjust February's payment....
  • Cheers yea they’ve refunded the start of January payment of £1250 but essentially that same payment will now be £1550 as they are charging the interest for 21st to 31st December but I’d already paid a full months interest on that portion of the mortgages in December so wasn’t sure if it’s right I’m paying that part of the interest twice. 
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